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QatarEnergy, the state-owned shareholder of aluminium producer Qatalum, has halted aluminium production as tensions escalate between Iran, Israel and the United States, the company announced.
In a brief statement, QatarEnergy said it is suspending output of several downstream products, including urea, polymers, methanol and aluminium, across its operations in Qatar.
Further details on the nature of the aluminium production stoppage were not provided.
Global aluminium producer Hydro, which owns 50% of Qatalum, said on Tuesday: “The specific implications for aluminium production at Qatalum are currently unclear and Hydro is seeking to obtain more information.”
QatarEnergy previously ceased production of liquefied natural gas (LNG) and associated products on Monday March 2, following “military attacks on QatarEnergy’s operating facilities in Ras Laffan Industrial City and Mesaieed Industrial City in the State of Qatar,” the company said.
Qatalum produced 687,000 tonnes of primary aluminium in 2025, according to Qatar Aluminium Manufacturing Company (QAMCO), a listed company on the Qatar stock exchange, which owns the remaining 50% of Qatalum. QatarEnergy owns 51% of QAMCO.
Qatalum has a nameplate capacity of primary aluminium of 636,000 tonnes and a casthouse capacity of 664,000 tonnes, according to Hydro.
Qatalum produces London Metal Exchange certified sows, while its casthouse produces primary foundry alloys (PFA) and extrusion ingots or billets.
“This could mean that Hydro is short of VAP [value-added products, such as billet],” a trader told Fastmarkets.
“An extended conflict could have an enormous impact on aluminium supply. We’re also closely monitoring any impact to gas supply as all of the key smelters in the region are gas-powered,” they added.
Qatalum’s Mesaieed site hosts a dedicated gas-fired power plant.
“All ports in the region are closed to security reasons because Jebel Ali was hit, at the moment we aren’t selling anything to the spot market,” a Middle Eastern producer said.
Jebel Ali is a key commercial port and regional transit hub in the United Arab Emirates.
European and US primary aluminium premiums could see further upside pressure on supply concerns following the closure of the Strait of Hormuz, a key transit corridor for Middle Eastern aluminium exports and alumina imports, market participants told Fastmarkets.
Fastmarkets’ daily aluminium P1020A premium, in-whs dup Rotterdam was $300-340 per tonne on Monday, up by $20 per tonne from $280-320 per tonne day on day amid supply concerns from the Middle East.
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